NOPAT vs Net Income
To determine the NOPAT formula for any given company, calculations must first be done to determine EBIT (earnings before interest payments and taxes). EBIT is the starting point for calculating NOPAT.
NOPAT = Operating profit x (1 - Tax Rate)
An alternative formula is as follows[3]
NOPAT = Net Profit After Tax + after tax Interest Expense - after tax Interest Income ...
NOPAT = Operating Income x (1 - Tax Rate)
RELATED TERMS
Economic value added ...
Net Operating Profit After Tax (NOPAT)
Frequently used in the calculations of Economic value added and Free cash flow, NOPAT is defined as a company's operating profit after deducting its tax liability.
SVA = NOPAT - Cost of Capital
For instance, if a company's NOPAT is $200,000 and its capital costs are $50,000, its SVA would be $150,000 ($200,000 - $50,000 = $150,000).
Dividends augment SVA while additional issuances of stock lower SVA.
NOPAT = Operating Income x (1 - Tax Rate)
Net Operating Profit Less Adjusted Taxes - NOPLAT
Total operating profits for a firm with adjustments made for taxes.
= NOPAT - (WACC)(CAPITAL)
where NOPAT = EBIT (1-tax rate)
Economic Value Added Return on Capital : EVA / Capital ...
Net Operating Profit after Taxes (NOPAT)/Invested Capital
Return on Invested Capital (ROIC) is a sophisticated way of analysing a stock for Return on Capital that adjusts for some peculiarities of RoA and RoE.
Return on Invested Capital (RoIC)
Net Operating Profit after Taxes (NOPAT)/Invested Capital ...
NOPAT Acronym for Net Operating Profit After Tax, which refers to an estimate of what... normal distribution A statistical term referring to a bell-shaped probability distribution, which is centered on some mean (M).
 See also: Profit, Rating, Capital, Return, Investment
  
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